Lenovo is considering a bid for smartphone maker Palm. But such a move could be risky. Palm is slipping partly because its operating system is caught in a dead zone somewhere between Apple's iPhone and Google's Android.
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Palm shares jumped more than 8% in early afternoon trading after Harbinger Capital Partners disclosed Wednesday that it has taken a 9.48% stake in the struggling smartphone maker. For the noted hedge fund run by Philip Falcone, it's another bet in the wireless industry.
Palm seems to have had the good sense to shop itself around a month prior to reporting its devastating third-quarter earnings. It approached Chinese telecom Huawei Technologies, but the two never got to talk potential price before Palm's stock cratered.
Struggling smartphone maker Palm is reportedly gearing up for a sale, and is poised to put out a call for bids in a move that could come as early as this week. Palm's shares soared 20% in morning trading, climbing as high as $6.17.
Topping the wish list for the iPhone and iPad: broader ability to run more than one program at a time. Users who bemoaned the lack of multitasking may at last get their gripes addressed in software updates for the iPhone and iPad tomorrow -- though Apple has promised nothing.
Verizon Wireless announced it was slicing the prices on its Palm Pre Plus and Palm Pixi Plus by more than 60%, and on the BlackBerry Curve by more than 70%. That's good news for both Palm and Research In Motion, which have seen their smartphone sales slip recently.
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The smartphone maker's stock cratered to a new 52-week low after it warned that fourth-quarter revenues would be roughly half of Wall Street's expectations. Then two analysts lowered their price targets for the stock to $0. That's like throwing gasoline on a four-alarm fire.
